Summary Policy

Date
October 25, 2002

Reference Number
CSP - A07

Key Words
Arm's length (related parties, related persons)

At arm's length is a tax concept describing a relationship in which the parties are acting independently of each other. The opposite, not at arm's length, covers people acting in concert without separate interest, including individuals who are related to each other by blood, marriage, adoption, common-law relationships, or close business ties.

• Meaning of Arm's Length, IT-419.
• Income Tax Act, R.S.C. 1985 (5^th supp.) c. 1, ss. 251(1) to (6).